Amazon FBA Fees Explained - 2026 India Seller Edition
Every Amazon FBA fee you will pay, broken down with real examples from a $32 bedsheet sale. Referral fee, pick & pack, monthly storage, inbound placement, low-inventory, removal, returns processing - none hidden, all real.
For a $32 standard-size product, expect to lose about $11-13 to Amazon (35-40% of revenue). The big three: 15% referral fee, $5.40 FBA pick & pack, $0.50/cu.ft. monthly storage. Surprise fees like inbound placement and low-inventory can add $1-2 more. Plan for 38-42% total Amazon take in your unit economics.
What's in this guide
Referral fee
The biggest fee. Amazon takes a percentage of every sale, varies by category. Most India-relevant categories:
| Category | Referral fee | Min fee |
|---|---|---|
| Apparel & Accessories | 17% | $0.30 |
| Home & Kitchen | 15% | $0.30 |
| Beauty & Personal Care | 8% (under $10) / 15% | $0.30 |
| Health & Household | 8% (under $10) / 15% | $0.30 |
| Jewelry | 20% | $0.30 |
| Toys & Games | 15% | $0.30 |
| Office Products | 15% | $0.30 |
Charged on the total sale price including shipping the customer pays, not your net.
FBA Pick & Pack fee
Amazon's charge for storing, picking, packing, shipping, and customer service. Based on size tier (not weight alone):
| Size tier | Pick & pack 2026 | Typical product |
|---|---|---|
| Small standard (up to 1 lb) | $3.06 | Phone case, supplement bottle |
| Large standard (1-3 lb) | $4.16 | Coffee maker, small toy |
| Large standard (3-20 lb) | $5.40 | Bedsheet set, blanket |
| Small oversize | $8.60 | Large pillow, lamp |
| Medium oversize | $11.40 | Floor mat, large rug |
Use Amazon's FBA Calculator for your specific SKU or our FBA Fee Calculator.
Monthly storage fee
Charged per cubic foot occupied in Amazon's warehouse:
- Standard size: $0.78/cu.ft (Jan-Sep) → $2.40/cu.ft (Oct-Dec)
- Oversize: $0.56/cu.ft (Jan-Sep) → $1.40/cu.ft (Oct-Dec)
Q4 (Oct-Dec) storage triples. Plan for it - either ship just-in-time or store buffer with a 3PL like us at $0.50/cu.ft. flat year-round (33-79% cheaper than Amazon's Q4 rate).
Aged inventory surcharge: stored 271+ days adds $0.10-$6.90/cu.ft on top. Stored 365+ days = $6.90/cu.ft. Kills slow-moving SKUs.
Inbound Placement Service fee (NEW in 2024)
Amazon now charges to ship your inventory across its fulfillment network. You choose one of three options when creating an inbound shipment:
- Optimized split shipment: Free, but you ship to 4+ FCs (expensive freight)
- Partial split: $0.20-$0.60/unit, ship to 2 FCs
- Minimal split: $0.45-$1.50/unit, ship to 1 FC (cheapest freight, highest Amazon fee)
For most Indian sellers shipping container loads, the minimal split is worth it - saving freight outweighs the placement fee.
Low-Inventory-Level fee (LIL)
Introduced April 2024. Amazon charges extra ($0.89/unit) if your IPI (Inventory Performance Index) stays low - basically if you keep less than 28 days of inventory in stock.
How to avoid it: maintain at least 28-42 days of cover. We monitor this in our account management service and trigger restocks before the threshold hits.
Returns processing fee
For categories with high return rates (apparel, shoes, watches, jewelry), Amazon charges a returns processing fee on every unit returned. Currently $1.78 for small standard, scaling up with size.
Most home and kitchen categories are exempt. Apparel sellers should factor this into pricing.
Removal & disposal fees
If you want unsold inventory returned or disposed:
- Return to you: $0.97-$2.30/unit + freight
- Disposal: $0.97-$2.30/unit
- Liquidation: Amazon sells it cheap, you get pennies
Better path: ship FBA removals to our Austin TX warehouse ($1.25/unit incl. inspection), where we re-prep 60-70% for resale through FBM or other channels.
Full $32 bedsheet sale breakdown
Real example. Standard-size cotton bedsheet set, manufactured in Karur for ₹450 ($5.40), sold on Amazon for $34.99:
| Line item | Amount | % of price |
|---|---|---|
| Sale price | $34.99 | 100% |
| – Referral fee (15%) | -$5.25 | 15% |
| – FBA pick & pack (large std) | -$5.40 | 15.4% |
| – Monthly storage allocation | -$0.18 | 0.5% |
| – Inbound placement (minimal) | -$0.45 | 1.3% |
| – Returns allocation (3%) | -$0.55 | 1.6% |
| Amazon's total take | -$11.83 | 33.8% |
| – COGS ($5.40) | -$5.40 | 15.4% |
| – Freight allocation | -$2.50 | 7.1% |
| – Think14 prep ($0.70) | -$0.70 | 2.0% |
| – Ad spend (20% ACOS) | -$7.00 | 20.0% |
| Net per unit | $7.56 | 21.6% |
At 1,000 units/month: ~$7,560/month net profit on $34,990 GMV. Solid product.
The 35-40% Amazon take is normal. The mistake is pricing as if it weren't.
Want this calc for your real product? Use our Profit Margin Calculator - or send us your product details and we'll do it for you within 1 business day.